You can take another look at this week’s news and we’ll round up the most thought-provoking or unmissable comments posted after stories or letters sent straight through to the editor.
Comment any time on the Mortgage Solutions website and you could feature in next week’s Mortgage Mutterings.
……………………………………..
PPI Change: It’s been a long time coming
Dear editor of Mortgage Solutions,
News that the Competition Commission has published its final order, detailing measures which will reduce the risk of consumers being mis-sold PPI and create opportunities for other providers, is to be welcomed.
However it’s disappointing the prohibition recommendations do not come into force until April 2012. For years British Insurance has called for greater transparency in this sector and lobbied providers to better inform consumers, and so treat them more fairly, when selling and pricing PPI.
Whilst many firms have changed the way they market and sell PPI, the ever-increasing number of complaints received by the Financial Ombudsman Service – over 700,000 last year – demonstrates the need for significant intervention.
Calls for intervention were formally heard in September 2005 when the Citizens Advice Bureau referred a ‘super complaint’ to the Office of Fair Trading.
The Commission began to investigate the PPI sector in February 2007 and since then has endeavoured to reign-in providers’ anti-competitive practices.
When the prohibition orders do finally come into force, it’ll be over six and a half years after the CAB voiced its mis-selling concerns. During this time, consumer confidence in PPI has plummeted.
Whilst it’s frustrating to have to wait another year before consumers are given the opportunity to actively shop around for PPI after their credit provision, it gives us time to rebuild their confidence by continuing to be transparent in our dealings and offering the best deals we can.
These much-needed PPI changes have been a long time coming, but once implemented, they’ll not only safeguard consumers’ finances better, but enable all involved to rebuild PPI’s damaged reputation.
Yours sincerely
Nel Mooy
Managing director of British Insurance
04 Apr 2011 | 12:55
………………………….
04 Apr 2011 | 10:57
IFAonline
The FSA hive off a quite successful department showing the public how to save money called the CFEB. Within a few months it announced that this was a “temporary” reorganisation and is now going to call it the Money Advice Service. The only difference between all three is the fact that all the brochures, booklets and websites will cost us all a fortune. Besides, what is the Consumer Council and Which? about then? It seems like two organisations covering very similar ground.
tezza
04 Apr 2011 | 14:29
……………………………
TSC: Uncompetitive banks treating customers poorly
Mortgage Solutions
04 Apr 2011 | 13:13
Vicky Hartley
Is there no room any more for small personal banking? Why is big always best in the eyes of regulator and most politicians? Banks are large employers, but offer horrendous results in terms of customer satisfaction and incredible risk to the country. I know the TSC and Mervyn King of the Bank of England are appalled at the way the big four perform, but those with real influence, FSA and George Osborne, ignore the big bank poison. So who is directing the path to the future? Heaven forbid it is the FSA.
Chris Ridgeway
04 Apr 2011 | 18:45
Comment two
If the FSA would like to pay me 1% of the cost, I would be happy to provide free independent, unbiased financial advice to the 1% of the population that require this service. Why do I have to pay the FSA to fund someone else to do it? Only 99 others required across the UK, and the job’s done.
Clarky51
05 Apr 2011 | 10:23
…………………………….
Belgium’s latest offering proves hard to stomach
Mortgage Solutions
05 Apr 2011 | 12:54
When I look at the size of my old mortgage files with comprehensive fact finds and detailed KFI s, I wonder why Europe is not taking our lead on mortgage rules & documentation. Can we not just once be copied by Europe, instead of adopting its legislation and then having it “goldplated” back here?
Philip Pashute
05 Apr 2011 | 21:08
……………………………..
Less than 10% of brokers fed back on latest consultation paper
Mortgage Solutions
05 Apr 2011 | 09:27
Vicky Hartley
All the brokers I know feel that they are only there to be ripped off for fees to support the bureaucratic self-serving FSA. Will the FSA ‘listen’ to us? No. They will do what they want, ignoring all the foot soldiers.
Robin
05 Apr 2011 | 10:26
………………………………..
FSA in firing line again for enforcement action
Mortgage Solutions
06 Apr 2011 | 09:56
IFAonline
This is appalling and shows that IFAs have no protection or recourse. If this was to happen the other way round the proverbial would hit the fan and the IFA would be hung, drawn and quartered with no fair hearing. This attitude has got to be stopped otherwise the FSA and whoever follows them will be allowed to get away with murder and ignore the consequences of their actions, which has been proved over and over again.
terry
06 Apr 2011 | 23:30
………………………………….
Nationwide follows Lloyds in interest-only crackdown
Mortgage Solutions
05 Apr 2011 | 15:22
Simret Samra
I presume that Nationwide will, like many other lenders, still allow 75% of the advance to be on interest-only with the remaining part on capital repayment even if they are borrowing 80 or 85% LTV. I think this has become acceptable in the market place as the majority of clients who proceed on interest-only are generally wealthy clients with the loan to value on these cases considerably lower than 75%. Interest-only mortgages have their place in the market and must remain, but I don’t believe offering a maximum of 75% on full interest-only will have much of an impact.
Max Mace
06 Apr 2011 | 08:59
…………………………….
Have a great weekend
From the Mortgage Solutions team
